$100M CEO Shares the Secret to Building Successful Companies

The podcast features a conversation with an entrepreneur who reflects on his journey, highlighting the significance of Founders Inc. and its creator, Furqan Rydhan, likened to "Silicon Valley's Tony Stark." The discussion covers the challenges and strategies of building and scaling businesses, emphasizing the importance of founder-market fit and the value of perseverance. The guest shares insights on successful ventures like TinyCo and Native, the impact of mentorship, and the evolving landscape of entrepreneurship. The narrative underscores the blend of ambition, resilience, and the pursuit of impactful innovation in the tech world.

• The host started the podcast almost two years ago.
• The guest was recommended by Furon as one of the first guests.
• Furon has built an impressive space at Founders Inc, likened to his dream come true.

“I started this podcast I think almost two years ago now and we met through Furon.”

• The guest compares Furon to Tony Stark of Silicon Valley due to his passion for building.

“I really think of Furon as like Silicon Valley's Tony Stark in that what he loves is like building stuff for the sake of building stuff.”

• Venture capitalists often look for founders with specific industry experience.
• Example: PlanGrid founders had experience in construction, aiding their success.
• Contrasting example: The guest’s brother founded a deodorant company without prior knowledge but became an expert within months.

“Venture capitalists have this concept of like founder market fit right where they're like I want you to have been in this specific space.”

• The guest often started companies in industries where he had no prior experience.

“I've always had no founder market fit. When we started TinyCo, I knew nothing about games and I knew nothing about licensing.”

• TinyCo started by creating free-to-play mobile games monetized through in-app purchases.
• The guest pivoted to licensing popular IPs like Family Guy to attract users without high customer acquisition costs.
• The process involved cold messaging and leveraging connections to secure licenses.

“We came up with Family Guy and didn’t know anything about licensing...we just found the right person at Fox and went to them.”

• They also secured the Harry Potter license through persistent efforts and leveraging high-level contacts.

“We got a meeting with a Warner Brother CEO...the CEO just took out his phone and messaged somebody on the team and then all the roadblocks went away.”

• Mobile gaming is challenging due to rapid technological advancements, competition, and finite game durability.
• The guest highlighted the need for constant technological upgrades, strong analytics, and creative storytelling.

“Mobile gaming is a really hard business because Apple keeps updating the iPhone...you have to be really good at math and analytics.”

• Competition in the gaming industry is fierce, with many developers passionate about creating games.

“There’s just a tremendous amount of competition...competition sucks, I hate competition.”

• TinyCo was acquired in 2016 after an investment banker facilitated the sale.
• Post-acquisition, the guest struggled to maintain the same level of motivation and experienced an existential crisis.

“I will climb to the ends of the Earth when I own something but when I don’t own something I just can’t summon the energy to care.”

• The guest expected significant life changes post-sale but found that little changed, leading to existential dread.

“There is no like thing that happens when you...it's like losing your virginity...nothing actually changes, you're the same guy you were.”

• The guest realized that making incremental money is not as fulfilling as he expected.
• He continues to seek purpose and motivation beyond financial success.

“Making an incremental dollar or $50,000 or million dollars or whatever is not...”

• The podcast delves into the guest’s journey, the challenges faced in the mobile gaming industry, and the personal reflections post-acquisition.
• It highlights the importance of passion, persistence, and the realization that financial success does not equate to personal fulfillment.

• The speaker discusses the realization that making more money may not significantly change their quality of life.
• They compare their lifestyle to that of wealthy individuals, noting that they already use similar high-end products.
• The speaker shares a story about a person who achieved financial independence and chose not to pursue further investments.

"I drive the same car as Elon Musk, a Tesla. I use the same phone as Tim Apple at Apple. I use the same computer as Jeff Bezos."

• Highlights the similarity in lifestyle despite different financial statuses.

"I met this guy who started a company, he sold it, and he started with his brother. He was like, we achieved financial independence."

• Example of achieving financial independence and choosing a simpler life.

• The speaker admits to making less smart investment decisions due to increased spending power.
• They describe investing in five Y Combinator startups with high valuations and no product-market fit.

"I've definitely made a lot of dumb investments that I don't think make financial sense."

• Acknowledges poor investment choices influenced by financial freedom.

"The YC companies I just invested in, all five are pre-product market fit, and their valuations were 50 million, 35 million, 20 million, 20 million, 15 million."

• Details the high valuations of startups without proven market fit.

• Discusses the unique status symbols in Silicon Valley, such as startup investments rather than luxury items.
• Describes how people in Silicon Valley collect startup investments as a status symbol.

"Silicon Valley is this crazy incestuous bubble. So rich people don't buy Prada shirts or Ferraris."

• Highlights the different status symbols in Silicon Valley compared to other places.

"People collect startup investments and put them up on the wall like the way that people collect cars to show off in a garage."

• Illustrates the cultural significance of startup investments in Silicon Valley.

• The speaker argues that angel investing is often a poor financial investment for most people.
• They compare the returns of angel investing to the NASDAQ 100, highlighting the liquidity and better returns of the latter.

"Angel investing is a really bad financial investment for most people."

• States the general inefficiency of angel investing.

"You get a 3x return with full liquidity from the NASDAQ 100, whereas if you invest in a venture fund or angel invest, you're tied up for 10 years."

• Compares the returns and liquidity of NASDAQ 100 versus angel investments.

• The speaker shares their experience of investing in real estate during the Great Financial Crisis with their father.
• They describe the strategy of buying homes below replacement cost and renting them out.

"Homes are 75% off sticker price. You can't build a new home for the price that these homes are selling for."

• Highlights the investment opportunity during the financial crisis.

"We bought them all for cash and rented them out. When there was enough money in the bank account from the rent to buy another one, we'd just go buy another one."

• Describes their systematic approach to real estate investment.

• The speaker discusses their involvement in private equity, focusing on buying and improving businesses.
• They share an example of advising a dentist to optimize their practice before selling it to private equity.

"Going from zero to one is really hard. Maybe I should try to buy a company that's at 0.5 or at one and then take that business and improve it."

• Explains the strategy of buying and scaling existing businesses.

"I was like, instead of selling to the private equity firm, how about I'll buy it. Let's grow this business and sell it for more."

• Describes the approach of optimizing a business before selling it for a higher value.

• The speaker reflects on their difficulty in achieving a work-life balance despite attempts to change.
• They mention hiring a "chief fun officer" to help balance their life but finding it challenging to follow through.

"I try to change it. My girlfriend tries to change it, but so far, it hasn't clicked."

• Acknowledges the ongoing struggle to balance work and personal life.

"I hired somebody and then I was like, I'm too busy. Sorry, I got this random dude on 2 a.m. on the bridge."

• Illustrates the challenge of prioritizing personal time over work commitments.

• The speaker talks about mentoring entrepreneurs through walks and discussions.
• They share a story about selling mobile games to a former employee who chose a low-effort approach to maintain revenue.

"I started doing walks on Saturdays or Sundays with entrepreneurs. That's the dream."

• Mentions the practice of mentoring entrepreneurs through casual walks.

"He realized that he could work 70 hours a week and grow these, or he could just work two hours a month and do nothing."

• Highlights a former employee's choice to maintain revenue with minimal effort.

• Met at Founders Inc and started collaborating on investment opportunities and startup ideas.
• Perit is described as humble, curious, and helpful.
• The collaboration focuses on starting new businesses and learning from each other.

"Perit and I started working together... we met at Founders Inc... he might have proposed the idea of let's work together and we'll do whatever you want."

• They explore investment opportunities and create startup ideas together.

"I learn way more from him than he learns from me."

• Emphasizes the mutual learning and growth in their partnership.

• Younger professionals often work with slightly older, successful mentors.
• This trend is more prolific now, partly due to social media platforms like Twitter.

"I think it has existed for a while but I think it's a lot more prolific than it was before."

• Social media highlights professional accomplishments, encouraging more people to pursue similar paths.

"Twitter has made it so people are a lot more focused on... trying to do more things than I think culturally people would have 15 years ago."

• The culture has shifted from focusing on a single venture to managing multiple businesses or roles.

• The world has become more efficient, making traditional business strategies less effective.
• Example: Warren Buffett and Charlie Munger couldn't start Berkshire Hathaway today due to increased competition and financial strategies.

"The world is so efficient that there's so much private equity out there trying to go find businesses to buy."

• Modern business strategies require more creativity and adaptation to stand out.

"Consumers are just going to get tired of the non-top tier guys shilling kind of mediocre commodity products."

• The importance of authenticity and creativity in marketing and product development.

• Working with family can be both rewarding and challenging.
• Family members often show interest in business ventures and provide ideas and pressure.

"When I call my mom or dad, they will ask me about... my business."

• Parents' involvement can add pressure but also foster a strong business mindset from a young age.

"My father will generally just give me new business ideas and be like, why aren't you working on this business idea that I gave you?"

• Family dynamics influence business decisions and career paths.

• The strategy of partnering with content creators for product promotion is currently effective but may not last.
• Example: Native's success with a focused marketing strategy on Facebook ads.

"The go-to-market strategy is like paid marketing and press... doesn't work anymore."

• The marketing landscape has evolved, requiring more innovative approaches.

"You have to make it feel like it's not an ad... you really already have to get creative."

• The need for authenticity and creativity in marketing strategies to engage consumers.

• The desire to prove oneself repeatedly can drive successful entrepreneurs to start new ventures.
• Example: A successful entrepreneur wanting to prove he can succeed again despite already achieving significant success.

"I want to prove to everyone I can do it again."

• The importance of finding a meaningful and impactful next venture.

"What I work on, I want to be my magnum opus... the company name that's going to be on my tombstone."

• The aspiration to create a lasting impact and contribute positively to the world.

• Society often celebrates financial wealth over impactful contributions.
• The desire to focus on projects that do good in the world rather than just generating wealth.

"I would have thought that you would see people who are post-economic be doing awesome good in the world."

• The goal to support others in doing good and build a company with a triple bottom line.

"I'd love to try and do something that supports other people who are good doing good things."

• The challenge of balancing financial success with meaningful impact.

• The importance of being open to new ideas and learning from others.
• Seeking advice and insights from venture capitalists and industry experts to identify promising business opportunities.

"I'm trying to spend a bunch of time with VCs who do all of this analysis of markets and business models to get ideas from them."

• The strategy of leveraging external knowledge and expertise to build a successful and impactful company.

"Trying to be a lot more thoughtful and strategic about what I work on so that it can... build a company of consequence."

• The focus on building a company that not only succeeds financially but also makes a significant positive impact.

• The speaker discusses efforts to improve the quality of life for their parents.
• They share how their brother has taken various steps to support their parents, such as hiring a massage therapist and a personal trainer.
• They also mention the creative way they encourage their mother to shop at Whole Foods by sending her gift cards.

"He went to her house and said today we're going to go to the grocery store and you're going to put in your resignation letter."

• The quote highlights a decisive moment where the speaker's brother helps their mother retire, emphasizing the importance of family support.

"My brother has done a really good job of this where he's like I found a massage therapist that's going to come give you a massage every week on Saturdays."

• This illustrates the proactive measures taken by the speaker's brother to enhance their parents' well-being.

"We'll go to amazon.com and buy Whole Foods gift cards and send them to her."

• The quote shows a clever tactic to ensure their mother shops at a healthier grocery store.

• The speaker is focused on maintaining their health through various means, including hiring a personal chef and participating in regular workouts.
• They mention using health scans and consulting with medical professionals to monitor their health.

"I started this thing my body tutor where somebody calls me every day and reminds me to work out and eat well."

• The speaker has implemented a daily accountability system to stay on track with their health goals.

"We got a personal chef that just makes like the best tasting food that's super healthy."

• This highlights the investment in a personal chef to ensure a nutritious diet.

"I'm trying to do every scan like pruvo scan the calcium CT coronary scan."

• The quote underscores the speaker's commitment to comprehensive health monitoring.

• The speaker discusses the luxury of not worrying about costs and being able to afford high-quality experiences and services.
• They mention hiring a CEO for their real estate business to alleviate their sister's burden.

"I actually just don't think about how much anything costs."

• This illustrates the financial freedom the speaker enjoys post-exit from their company.

"I hired a CEO for our real estate business recently and fired my sister."

• The quote shows a strategic decision to improve business management and family dynamics.

• The speaker describes their daily routine, which includes managing a long to-do list and attending fewer meetings post-COVID.
• They emphasize dedicating weekends to spending quality time with their girlfriend and dog.

"I wake up and just am overwhelmed with my to-do list."

• This highlights the speaker's busy and structured daily life.

"Post-COVID I can do like two meetings per day and that's it."

• The quote indicates a change in the speaker's work capacity due to the pandemic.

• The speaker reflects on the impact of social media and how certain platforms can either hinder or help their productivity.
• They discuss the importance of balancing work with personal life and being present during weekends.

"Twitter makes my life way harder."

• The quote reveals the negative impact of social media on the speaker's productivity.

"My weekends go to making sure my girlfriend doesn't break up with me."

• This humorously underscores the speaker's commitment to maintaining a healthy relationship.

• The speaker shares inspiring stories of individuals who have transitioned from humble beginnings to successful careers in tech.
• They emphasize the importance of mentorship and support in helping the next generation succeed.

"There was a LinkedIn profile that was went to high school, didn't graduate, got a GED, went to Community College, dropped out, Sandwich Artist at Subway 3 years, go to Bloom Institute of Technology, software engineer Google."

• This quote exemplifies the transformative power of alternative education programs.

"Furon is such a hero for like doing that and I wish that I was doing more stuff like that."

• The speaker acknowledges the significant role of mentors in fostering success and expresses a desire to contribute similarly.

• The speaker outlines their goals for the next five years, including personal milestones and maintaining a mindset of abundance.
• They express a desire to have a family and continue enjoying a high quality of life.

"I think it'd be awesome to have a bunch of those realized."

• The quote reflects the speaker's ambition to achieve set goals and see them come to fruition.

"I want to stay in that place of abundance and in a mindset perspective."

• This highlights the speaker's commitment to maintaining a positive and abundant mindset.

These notes encapsulate the key themes and ideas discussed in the transcript, providing a comprehensive overview suitable for study or review.